A deputy Attorney General and Minister of Justice Joseph Dinkiok Kpemka has described as appropriate the revocation of the licenses of UT and Capital Bank due to “severe impairment of their capitals.”
“…It shouldn’t be as if it’s a very strange happening… but it is to protect the public and customers,” he said Wednesday August 16, 2017 on TV3.
“They [BoG] acted well this time,” he added, noting that the Central Bank was scathingly castigated when DKM and God is Love and others folded for shirking its responsibility.
The Central Bank Monday announced the revocation of the licenses of the two banks due to severe impairment of their capital and as a result it “approved a Purchase and Assumption transaction with GCB Bank Limited that transfers all deposits and selected assets of UT Bank Ltd and Capital Bank Ltd to GCB Bank Ltd. “
While the remaining assets and liabilities will be realised and settled respectively through a receivership process to be undertaken by Messers Vish Ashiagbor and Eric Nana Nipah of PricewaterhouseCoopers, it added in a statement.
Meanwhile, the Minority Members in Parliament have called for a bi-partisan investigation to be instituted into circumstances leading to the collapse of the two banks.
The call was made Tuesday at a press conference addressed by the Minority’s spokesperson on Finance, Cassiel Ato Forson.
“We are urging the government to, as a matter of urgency, institute a bi-partisan probe into what occasioned the rise and fall of these two banks. We think that this situation needs to be investigated so that if it is true that actions or inactions by owners and managers of these banks actually resulted in the banks collapsing, I believe that the state will have to take action,” he said.
